The $65 billion stock sale agreement for workers of the fintech firm Stripe
According to Stripe, investors are providing the majority of the financing for the sale, but it will also use some of its own funds to buy shares from a few current and former workers via a process known as a "tender offer."
The payments services business Stripe said on Wednesday that its value has increased to $65 billion in a transaction that would enable workers to cash out their equity, perhaps postponing its eagerly awaited initial public offering (IPO). As.
According to Stripe, investors are providing the majority of the financing for the sale, but it will also use some of its own funds to buy shares from a few current and former workers via a process known as a "tender offer."
Prior to this, sources had told Reuters that Stripe intended to go public.
This would undoubtedly lessen the temptation to launch an IPO as soon as feasible. According to Alan Waxman, the founding partner of investment company LaunchBay Capital, Stripe (supposedly) turns a profit in 2023 and continued growth for a further one to two years would allow for greater values in the IPO.
Startup workers' remuneration usually consists mostly of stock-based payments; they cannot cash out their shares until their company files for an IPO or buys them back. doesn't purchase.
Venture capitalists are another option available to startups looking to purchase employee shares. These kinds of agreements may increase staff morale without reducing ownership.
Stripe refrained from revealing the identities of the investors involved in the funding round. However, Sequoia Capital and Goldman Sachs' growth equity fund were reportedly engaged, according to The Wall Street Journal, which broke the story first.
In addition to its response, Stripe refused to comment.
The business raised $6.5 billion in its most recent investment round in 2023, valuing it at $50 billion. He went on to say that while he wouldn't need the money to operate his company, he would utilize it to pay taxes and provide staff members cash flow.
In 2021, Stripe's valuation peaked at $95 billion. (Arun Koyyur edited; reporting by Niket Nishant in Bengaluru)
